More News on Private Labels

Private labels are gaining importance in retailers plan - particularly when it comes to bottomlines. Some retailer's plans are outlined below

" RETAIL MAJORS SOLD ON PRIVATE LABELS
With slowdown biting, retailers are now looking at private labels to boost their sagging bottomlines. Most retailers expect their private label offerings to contribute between 20% and 40% to revenues. Lifestyle International Ltd, part of the Dubai-based retail firm Landmark Group, is betting big on its private labels. executive director at Lifestyle International Ltd, said the company's apparels labels — Forca, Club Hopper, Fame Forever, Ginger, Junior and Melange — and furniture label Home Centre will contribute 25-30% to total turnover in a year or two. To stimulate sales, the retailer is looking at the lower price point strategy. Lifestyle stores will sell women's t-shirts, kurtis and men's shirts starting Rs99, Rs299 and Rs199, respectively. Bharti Retail Ltd., a wholly-owned subsidiary of Bharti Enterprises that owns the Easyday chain of stores, is bullish on its private labels business, too. One of the newest entrants to the space is The MobileStore, the Essar Group-owned mobile retail chain that will launch its own handsets in a month. The MobileStore is looking at Rs10,000 crore revenues from this venture in another 3-4 years. Future Group, one of the largest retailers in the country, has already launched a host of private products in most categories. At a recent industry event, founder Kishore Biyani said that Big Bazaar's potato chips brand, Tasty Treat, accounts for 20% of the grocery retail's total chips sales. Croma, Infiniti Retail Ltd's consumer electronics chain, last year entered the business with products like foot massagers, air-conditioners and microwaves. It has launched laptops, too, and expects its private labels to contribute 20% to revenues next fiscal.
Source : DNA Money: April 02, 2009 "